We are living in times of high litigation: legal suits, FIRs, and more. Many times, one gets involved in a legal tussle out of no fault or intent of their own. This is especially true on the road, where a third party can sue the driver for damage to the former’s car. Such situations can be addressed with the third party car insurance, which is mandatory in order to be allowed to drive a vehicle on Indian roads. We shall study in detail on third-party car insurance, its workings and claim process.
Meaning of third-party car insurance and its claim process
Under third-party motor insurance, the insurance company agrees to indemnify the insured person, if he is sued or held legally liable for injuries or damage done to a third party. For example, if one was involved in a car crash and the accident turns out to be insured’s fault, then the liability to the driver of the other car would be covered. However, one would be unable to claim for the damage to one’s own car. Third-party motor insurance covers against:
- Bodily injury to a third party
- Accidental death of a third-party
- Damage to third party property
- Permanent total disability of a third-person
Working methodology: The application for a third-party claim can be made against the vehicle owner by the victim, the owner of the property, or the legal envoy of the deceased. The other steps are:
- Post completion of the third-party claim application, an FIR must be filed with the police.
- The first information report must include the following details:
- Registration number of the vehicle involved, in case of an accident
- The license number of the driver
- Name and contact details of witnesses, if any.
- Subsequently, the claimant should file a case with the Motor Accident Claims Tribunal, under the jurisdiction of the area where the petitioner resides, the accident occurred, the residence of the driver or owner of the vehicle
- The documents like copy of the FIR and the original records of expenses incurred by the applicant must be submitted as a proof of damage/loss
- The total compensation is reimbursed by the insurance firm based on the court directive.
Conclusion
Since ‘ignorance of the law excuses not’, one must plan for such unforeseen, unpleasant circumstances. One must also be aware of the exclusions namely:
- Compensation for the damage cannot be claimed more than once. For this reason, victims cannot expect their insurer to make up for any deficit in the reimbursement that has been decided by the court.
- In accordance with the existing structure of the tariff product:
- Liability is covered for an unlimited amount with respect to death or injury and damage to third party property for up to Rs.7.5 lakhs under a commercial and private car
- The policy provides compulsory personal accident cover for owner/driver of the vehicle for up to Rs.2 lakhs for a premium of Rs.100.
- The insured victim needs to comply with the terms and conditions of the insurance company while filing a third party claim.
Hence third-party car insurance is vital and unavoidable. Keep in mind the old adage, it’s better to be safe than sorry, and practise careful and cautious driving to avoid risking life and claiming compensation under third party insurance.
